Bangkok's skyline photographed during sunrise in Bangkok, Thailand, April 8, 2023. REUTERS/Athit Perawongmetha

BANGKOK (Reuters) -Thailand's economic growth is projected to reach 2.1% this year and then slow to 1.6% in 2026 in the face of increasing economic headwinds, the International Monetary Fund said.

Economic conditions suggest there is room for further monetary easing, it said in a statement dated November 13, after a staff visit to Southeast Asia's second-largest economy.

"Rising economic challenges amid limited policy space call for careful calibration of the policy mix to maximise effectiveness," the statement said.

In October, the Bank of Thailand unexpectedly held its one-day repurchase rate steady at 1.50%.

The central bank had made four rate reductions totalling 100 basis points since October 2024.

The next rate review is on December 17.

(Reporting by Kitiphong Thaichareon, Thanadech Staporncharnchai and Chayut Setboonsarng, Editing by David Stanway)